Air Control Technologies, Inc. v. Pre Con Industries, Inc.
Opinion
Opinion
I. Background1
Pre Con Industries (“PCI”) was the general contractor on a construction project for the United States Veterans Administration, and subcontracted Air Control Technologies (“ACT”) to work on the project’s heating, ventilation, and air conditioning (“HVAC”) systems. Pursuant to its obligations under the Miller Act, PCI and its surety, First National Insurance Company of America (“FNIC”), furnished a payment bond for the project.
ACT began working on the project in December 2008, and shortly thereafter encountered conditions on the job site that made the work more expensive than anticipated. PCI fired ACT in November 2009 when ACT demanded reimbursement for its unanticipated costs. ACT then offered to allow PCI to rent ACT’s equipment for use on the project, and PCI accepted the offer.
On March 14, 2011, ACT filed a complaint against PCI and FNIC in the Central District of California, alleging: (1) PCI breached both the original HVAC-service contract and
1 At this stage in the litigation, we accept Air Control Technologies’s version of the facts. N. Cnty. Cmty. Alliance, Inc. v. Salazar, 573 F.3d 738, 741–42 (9th Cir. 2009).